Mobile money lenders hit with new rules for CRB listing of loan defaulters
By Joshua Cheloti
The Central Bank of Kenya (CBK) has introduced new rules that mobile money lenders will be required to follow before listing loan defaulters with the Central Reference Bureaus (CRBs).
There has been a concern over the high number of Kenyans being listed on CRB by mobile money lenders without their knowledge.
But under the recently operationalized CBK Digital Credit Providers Regulations of 2022, mobile money lenders will not list defaulters with CRB before notifying the affected individuals at least 30 days before submitting their details.
Notification must be either in writing or through electronic means.
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File image of CBK Governor Dr. {atrick Njoroge. |Photo| Courtesy|[/caption]
The new regulations were recently published by the CBK through a gazette notice number 45.
"A digital credit provider who intends to furnish negative information to a bureau with respect to a customer shall, in writing or through electronic means, notify the customer of the intention to submit the negative information at least thirty days before submitting the negative information to the bureau," reads part of the new law contained in the gazette notice.
Once details are submitted for CRB listing, the digital lender will also be required to notify the individual again.
"Digital credit providers who have furnished credit information to a bureau shall, within thirty days from the date the information was furnished to a bureau, notify the customer that the customer's credit information has been forwarded to the bureau," adds the regulation.
Mobile loan providers will however not be allowed to submit for CRB listing, an individual who has a loan of less than Ksh1,000.
The new laws will come as a sigh of relief to thousands of Kenyans who have been depending on mobile loans for their financial needs.
Treasury Cabinet Secretary Ukur Yattani mentioned the new laws on digital lending when he issued a statement for the 2022/2023 budget at the National Assembly on Thursday, April 7, 2022.
File image of CBK Governor Dr. {atrick Njoroge. |Photo| Courtesy|[/caption]
The new regulations were recently published by the CBK through a gazette notice number 45.
"A digital credit provider who intends to furnish negative information to a bureau with respect to a customer shall, in writing or through electronic means, notify the customer of the intention to submit the negative information at least thirty days before submitting the negative information to the bureau," reads part of the new law contained in the gazette notice.
Once details are submitted for CRB listing, the digital lender will also be required to notify the individual again.
"Digital credit providers who have furnished credit information to a bureau shall, within thirty days from the date the information was furnished to a bureau, notify the customer that the customer's credit information has been forwarded to the bureau," adds the regulation.
Mobile loan providers will however not be allowed to submit for CRB listing, an individual who has a loan of less than Ksh1,000.
The new laws will come as a sigh of relief to thousands of Kenyans who have been depending on mobile loans for their financial needs.
Treasury Cabinet Secretary Ukur Yattani mentioned the new laws on digital lending when he issued a statement for the 2022/2023 budget at the National Assembly on Thursday, April 7, 2022. What's Your Reaction?
